TRUE OR FALSE? 136. Labor productivity differences are the only explanation give
ID: 1211069 • Letter: T
Question
TRUE OR FALSE?136. Labor productivity differences are the only explanation given by economists to address the questions of why countries produce the goods they do.
138. The principal consequences of protection are higher prices for the protected industry's output, higher profits for owners and higher wages for workers.
140. One of the major drawbacks of international trade is that, when developed countries open their markets to international trade, their markets tend to be flooded with lower quality products from developing countries.
141. The United States has a relatively well educated labor force, and thus is expected to have a comparative disadvantage in producing products requiring a large amount of unskilled labor.
12. When economists say that the demand for a product has increased, they mean that consumers are willing and able to purchase more at any given price.
25. A compensating wage differential is a wage difference attributable to different demands for labor.
TRUE OR FALSE?
136. Labor productivity differences are the only explanation given by economists to address the questions of why countries produce the goods they do.
138. The principal consequences of protection are higher prices for the protected industry's output, higher profits for owners and higher wages for workers.
140. One of the major drawbacks of international trade is that, when developed countries open their markets to international trade, their markets tend to be flooded with lower quality products from developing countries.
141. The United States has a relatively well educated labor force, and thus is expected to have a comparative disadvantage in producing products requiring a large amount of unskilled labor.
12. When economists say that the demand for a product has increased, they mean that consumers are willing and able to purchase more at any given price.
25. A compensating wage differential is a wage difference attributable to different demands for labor.
TRUE OR FALSE?
138. The principal consequences of protection are higher prices for the protected industry's output, higher profits for owners and higher wages for workers.
141. The United States has a relatively well educated labor force, and thus is expected to have a comparative disadvantage in producing products requiring a large amount of unskilled labor.
12. When economists say that the demand for a product has increased, they mean that consumers are willing and able to purchase more at any given price.
25. A compensating wage differential is a wage difference attributable to different demands for labor.
Explanation / Answer
136. Absolute advantage is determined by difference in labour productivity between countries. A country's choice of production depends on absolute advantage. A country chooses to produce that commodity which is more labour productrive. Therefore the statement is true.
138. If an economu is protected by tariff or quota then the domestic consumers have to buy from domestic market. As a result the demand of domestic market remains high. Domestic produceer surplus increases with protection and so as wage. Therefore this statement is true.
140. Yes the statement is true. As developing countries want to capture the new market, the price should be low, As a result the quality of the producet is compromised.
141. NO the statement seems to be wrong. generally education is unrelated to skill level. For a specific production needs specific skill which also comes from experience other than education. Suppose Americans are well educated in language or computer science, but for a meneral production the related skill is required, there is no use of laguage or computer science.
But suppose skill is related to education for this case. Then the use of educated labour force in unskilled production, the production really improve. But suppose the price is included, the product price of skilled labour is higher than the product price from unskilled labour, then the use of educated labour force in the unskilled production increases the opportunity cost, in this case you may argue that the above statment is true.
12. Demand for product has increasesd this implies that the demand curve shifts to right which shows the higher demand at the given price. Hence the statement is true.
25. Compensating wage difference means different wage is paid to different workers at different market. THe demand for the labour is different . Hence the statement is true.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.